Landlord Asks Dave Ramsey for Tips on Finding Good Renters

August 3, 2018

 

Dear Dave,

I’m a landlord, and I own a few houses and duplexes around town.

Recently, I made the mistake of renting to some tenants who were not respectful of my property.

Do you have any tips for selecting good renters?

Joe

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Dear Joe,

In my experience, most landlords simply aren’t thorough enough with the screening process when it comes to potential tenants.

It’s difficult to get to know someone — especially in this kind of situation — without spending some face-to-face time with them and digging into their backgrounds a little.

I have several rental properties, so here are a few tips that have served me well over the years.

Always require a big deposit up front. In addition, pull a credit bureau report on prospective renters.

I also drive by the place they’re currently living to see how they take care of things.

To me, this is a great indication of how responsible they are, and how they might treat my property.

Finally, get proof they’ve regularly made past rental payments on time.

It’s a leap of faith, to an extent, any time you sign an agreement with a new tenant.

But there are things you can do to make a more informed decision as to whom you’re doing business with!

—Dave